Replies to post #77844 on Koil Energy Solutions Inc. (KLNG)

[jchawk]

I think you need to back DR's projections off a bit it sets the expectations too high but shave 20% off your projects and you're probably on...

I agree with you overall we are drastically under valued right now.

[jk21]

Just looking at some valuation numbers as of the latest Q3 #'s and yahoo estimates as of 11/29.

Bare minimum:
Cash and equivalents: $ 5,155,069
Property and equipment, net: $ 12,219,276
Long-term debt, net of accumulated discount of $0 and $1,703,258: $ (914,225)
= net $16,460,120

divided by: Weighted-average common shares outstanding 177,413,975

Just straight cash and property/equipment (raw assets) minus our long-term debt gives us .092 PPS. absolute minimum value of the company in hard terms imo.

Book value, a common metric for a young company with little track record, is stockholder's equity of $54,621,239 divided by Weighted-average common shares outstanding of 177,413,975 which equals 0.3078 PPS.

None of this accounts for the fact that DPDW turned a profitable Q and next year looks to post another record breaking year. And none of this accounts for any of the fundamental developments such as paying down debt, obtaining a line of credit in times like these, and also adding to physical plant space and executive positions.

Q4 earnings is forecast at .01; Q3 came in a .01; Q2 was (.03); and Q1 was .00. Therefore '08 is looking to come in at (.01). '09 is forecast at .06 EPS on revenues of $71mil.

Surely DPDW has to be worth more than book value because of all the positive aspects of the fundamental developments and the growth in the sector etc.. what multiple is earned by the positive fundamental developments and the growth factor? 3, 4, 5? higher? maybe at least 3 in this environment? Would be higher under more normal market conditions imo. just some thoughts.